It’s not a good idea to argue about things you don’t know anything about. Most people realize this — until it comes to economics. A lot of people argue economics from a position of ignorance. President Biden is one of those people. In this episode of the Friday Gold Wrap, host Mike Maharrey dissects a couple of comments Biden made last week and teaches some economics along the way. He also talks about the significance of gold’s record-breaking week.
Are “greedy” corporations driving inflation? Could taxing billionaires solve the federal government’s fiscal problems?
According to President Joe Biden, the answer to both questions is yes.
And the correct answer is no.
Despite government officials and central bankers continuing to peddle the “transitory” inflation narrative, the average American isn’t buying it. They feel the squeeze of rising prices in their wallets. And it’s the average American who is hurt particularly hard by the skyrocketing cost of living. Peter Schiff appeared on the Megyn Kelly show to talk about how inflation really hurts working and middle-class Americans.
President Biden has proposed a borrow and spend “to infinity and beyond” budget featuring $6 trillion in government spending. That’s the largest amount of spending ever proposed in a presidential budget. It’s not accurate to call it a “budget.” The federal government has given up on actual budgeting.
The US government is spending money at a torrid pace. Uncle Sam blew through $547 billion in January. That brings total spending through the first four months of fiscal 2021 to $1.92 trillion.
And the spending spree is only going to increase. Congress continues to debate another $1.9 trillion stimulus package and there’s already talk of an infrastructure spending bill in the pipeline after that.
This raises the $1.9 trillion question: how is the government going to pay for all this?
Peter Schiff recently spoke at the January 2021 Virtual Money Show. He explained why the coming financial crisis will be much worse than 2008, and how the Federal Reserve and the US government are driving us toward this crisis with their inflationary monetary policy.
How are you weathering the great government shutdown of 2018?
We’re in day seven now. It’s been tough here in Lexington. I’m pretty sure I saw some kid setting up an unauthorized lemonade stand. I’m not sure we will survive the plague that’s sure to follow without the FDA to put a lid on such things.
